Roup v. Commercial Research, LLC

Commercial Research, LLC (“Creditor”) obtained an assignment of a default judgment that had been entered against Gary S. Roup in a Texas court. Creditor then filed the judgment in Colorado and began collection proceedings against Roup’s assets, including $3,729.24 held in a Health Savings Account (HSA). Roup asserted these funds were exempt from attachment or garnishment because his HSA is a retirement plan under section 13-54-102(1)(s), which exempted certain types of property (including funds held in any “retirement plan”) from levy and sale. The issue this case presented for the Supreme Court's review centered on whether an HSA qualified as a “retirement plan” for the purposes of section 13-54-102(1)(s), C.R.S. (2014). The Court held that an HSA is not a “retirement plan” within the meaning of Colorado’s exemption statute. "An HSA is not intended to replace income lost as a result of retirement; it is intended to cover medical costs incurred at any point during a person’s lifetime. The General Assembly has not chosen to provide an exemption for HSAs in the relevant statutes." The Court affirmed the judgment of the court of appeals. View "Roup v. Commercial Research, LLC" on Justia Law

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